Domain reporter

The Reserve Bank's decision to keep interest rates on hold at its first board meeting in spring spells good news for home buyers in the busy selling season.

As widely expected, the official cash rate remains at 2.5 per cent, which marks the 13th consecutive month since the last cut by the Reserve.

In a statement issued by the RBA, governor Glenn Stevens has reiterated that the cash rate is likely to remain unchanged for some time.

But it is not all good news with the Reserve Bank citing concerns over China's weakening property market.

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Mr Stevens referred to it as "a challenge in the near term".

Even so, LJ Hooker chief executive Grant Harrod believes stable low interest rates will continue to fuel the Australian market heading into spring, and give buyers more confidence to make a transaction.

"Certainly in the last couple of months, we've been in a situation where there's been insufficient stock to meet the level of buyer interest," he said.

"We should start to see more stock come into the market, which will then address the buyer interest that's out there."

Raine & Horne chief executive Angus Raine believes this spring will be even stronger than last year. "Our agents are screaming for more property on the market," he said.

"I believe this [decision] will encourage people who may have been considering selling for a number of years to actually put their property on the market."

Ray White chairman Brian White said continued low interest rates would be good news for buyers and sellers.

"The forthcoming spring season is as good as I've seen for quite a number of years," he said.

"Our offices have been reporting some very strong listings that would be marketed in spring.

"A lot of these listings have been created because people have already bought and are now selling the home they no longer need."

Domain Group senior economist Andrew Wilson said low interest rates had been an important factor in activating housing markets over the past two years. He believes rates will remain on hold for the remainder of this year.

"We've seen housing markets picking up over the past month; higher clearance rates in Sydney and Melbourne over winter. So the signs are still there that it's quite an active housing market going forward," he said.

AMP Capital chief economist Shane Oliver believes the low rates would also help to prop up the market in spring. He does not expect a rise until June next year.

"With the Reserve continuing to keep those rates low and signalling that they're likely to remain low for some time to come, it provides a degree of confidence for home buyers and investors in the market," he said.

The 25 experts surveyed by mortgage comparison website finder.com.au, including Dr Oliver, unanimously predicted that rates would remain on hold, with 10 predicting a rise in the first half of 2015 and 13 expecting an increase in the second half of next year.

Despite maintaining record low interest rates for 13 months the Reserve Bank has been unable to coax first home buyers into the market.

Figures released by mortgage broker AFG on Tuesday indicate that the number of home loans taken by first timers in August plunged to its lowest level in four years.

According to the AFG Mortgage Index, first home buyer home loans comprised only 9.5 per cent of all mortgages processed in August, the lowest level since June 2010.

Of the total $3.9 billion of home loans processed by the company, first home buyers accounted for $324 million. It is clear the odds are stacked in favour of investors, who borrowed $1.5 billion in August.

First home buyers in NSW are doing it toughest, comprising just 3.5 per cent of all mortgages processed by AFG. Queensland first timers accounted for 5.5 per cent of loans, followed by Victoria (9.4 per cent), South Australia (9.8 per cent) and Western Australia (21 per cent).